Accounting Assignment | Buy Homework Help
Calculate the return on total assets for 2014 and evaluate the result against the industry average in Exhibit 18.11, explaining why it compares favorably or unfavourably (round to two decimal places).
Current ratio………………………………………………….. 1.6:1Acid-test ratio …………………………………………………. 1.1:1Accounts receivable turnover ……………………………. 16 timesDays’ sales uncollected…………………………………….. 21 days merchandise turnover ……………………………………… 5 timesDays’ sales in inventory ……………………………………. 70 days total asset turnover …………………………………………. 2.3 times account payable turnover……………………………….. 4 times debt ratio ……………………………………………………… 35%Equity ratio ……………………………………………………. 65%Pledged assets to secured liabilities…………………….. 1.4:1Times interest earned ………………………………………. 50 times profit margin………………………………………………….. 14%Gross profit ratio…………………………………………….. 18%Return on total assets ………………………………………. 20%Return on common shareholders’ equity…………….. 32.7%Book value per common share………………………….. $8.63Book value per preferred share………………………….. $15.00Earnings per share …………………………………………… $1.79Price–earnings per share …………………………………… 18.2Dividend yield ………………………………………………… $0.35. Get Accounting Help Today
